Options Boot Camp 352: Let's Get Exotic With Knock-out And Knock-In Options

In this episode, hosts Mark Longo and Dan Passarelli discuss different options strategies such as covered calls, cash secured puts, and the wheel strategy. They also touch on the growing interest in exotic options and the role of flex options in recent volume spikes. Other topics include the importance of technical indicators for covered calls, the role of various options exchanges, and the potential for gamified options trading education. Additionally, they address listener questions ranging from the uniqueness of the options market to the practicality of using specific brokers and discussing their personal experiences in trading.   00:39 Welcome to Options Boot Camp 01:00 Tasty Trade Platform Overview 03:41 Pro Trading Crate Giveaway 07:12 Mail Call: Listener Questions 08:02 Market Reactions to Fed Announcements 11:30 Options Trading Polls and Insights 16:13 Fantasy Football and Trading 18:15 Question of the Week 22:22 Best Indicator for Covered Calls 23:58 Exotic Options Discussion 25:51 Options Trading Video Games 30:19 Favorite Option Strategies 33:02 Choosing the Right Exchange 36:22 Volume and Market Noise 40:28 Conclusion and Final Thoughts  

In this episode, hosts Mark Longo and Dan Passarelli dive into the world of Asian options, a type of exotic option. They explain how these options differ from standard "vanilla" options by basing their payoff on the average price of an underlying asset over a specific period, rather than its price at a single expiration date. The hosts break down the two main types: fixed-strike and average-strike options, providing clear examples of how their payoffs are calculated. They also discuss the historical origins of the name "Asian options" in the Singaporean commodity markets. The episode highlights the primary use case for these options: reducing volatility and hedging against wild price swings, making them particularly useful for industries like commodities, energy, and foreign exchange. The show also includes the popular "Mail Call" segment, where the hosts answer a listener's question about options flow and market volume statistics for August. Time Stamps [0:00] Intro and episode overview [2:50] Introduction to Exotic Options [4:05] What are Asian Options? [7:00] Average-Strike Asian Options [10:15] Fixed-Strike Asian Options [14:00] Use Cases for Asian Options [17:30] Mail Call: The hosts open the mailbag to answer a listener question about options flow and market volume in Q3. [29:00] Final Thoughts and Conclusion

Join your hosts, Mark Longo and Dan Passarelli as they dive deep into the world of exotic options, tackling questions about their name, their role in the 2008 financial crisis, and whether they're just a marketing gimmick. They also tackle more fundamental questions on scaling into a trade and the practicality of making all options cash-settled. The episode concludes with a forward-looking discussion on how algorithmic and AI trading are reshaping the options market.     Timestamps [00:00:00] - Intro & Sponsor [00:07:00] - What Are Exotic Options? [00:10:00] - Exotic Options & The 2008 Crash [00:15:00] - Scaling into a Trade [00:20:00] - Cash-Settled Options [00:25:00] - Open Interest Updates [00:30:00] - The Rise of Algo & AI Trading [00:35:00] - Outro  

In this episode, our hosts Mark Longo and Dan Passarelli dive into listener questions and hot topics shaping the options market. They break down a recent VIX trade, discuss the fascinating and volatile world of a popular new options stock, and answer a question about the increasing prevalence of exotic "event markets" on brokerage platforms. Timestamps 4:21 Mailbag: A review of a recent VIX flash poll.  5:34 The final outcome of the VIX 25 calls. 7:18 OPEN stock volatility and listener trades. 9:53 Results of a flash poll on trading OPEN. 11:00 The question of the week: Are you comfortable buying and holding the SPX right now? 13:41 Market Taker Question of the Week: How special cash dividends can lead to strike price adjustments, using an example from Pilgrim's Pride. 16:47 Listener question on the possibility of exotic options on major brokerage platforms. 21:48 Listener question about the rise of "event markets" (football binaries) on brokerage platforms.

This episode discusses various exotic options strategies, particularly lookback and fixed strike options, and their potential advantages and costs. Mark Longo and Dan Passarelli also address listener questions and concerns about options trading in the current market climate, including the higher volatility seen in recent earnings reports. They dive into the specifics of how lookback options work, the differences between floating and fixed strike lookback puts, and whether such exotic options are viable for retail traders. The episode also includes interactive audience polls about current VIX levels and earnings trading preferences and updates on the latest addition to the Options Insider Radio Network.   01:12 Welcome to Options Bootcamp 01:50 New Shows and Pro Membership Benefits 03:05 Introducing Dan Passarelli 03:38 Listener Mail Call: Exotic Options 05:00 Exploring Lookback Options 12:32 Fixed Strike Lookback Options Explained 20:39 Question of the Week: VIX Predictions 24:27 Earnings Season Trading Strategies 27:14 Market Taker Question of the Week 30:54 Conclusion and Upcoming Shows  

In this episode, hosts Mark Longo and Dan Passarelli (Market Taker Mentoring) delve into various listener-submitted questions and trading strategies. They talk about a listener's in-depth query on a put calendar trade with Johnson & Johnson and its associated risks, and another listener's covered call strategy dubbed 'Ultra Premium Harvesting.' The hosts also answer inquiries on the use case and risks involved in trading inverse volatility products like SVXY, and discuss the optimal products and strategies for trading precious metals like gold and silver. Additionally, they address a listener's request about visiting the studio and potential local meet-ups.   01:12 Welcome to Options Bootcamp 03:10 Listener Mail Call 03:57 Ben's Epic Treatise on Put Calendars 11:39 Michael K's Ultra Premium Harvesting Strategy 17:00 Exploring Inverse Volatility Products 20:21 Trading Precious Metals 23:21 Listener Annet's Chicago Visit 25:08 Conclusion and Upcoming Episodes  

This episode dives deep into Long-Term Equity Anticipation Securities (LEAPS) and their strategic use, particularly in stock substitution strategies. Hosts Mark Longo and Dan Passarelli (Market Taker Mentoring) discuss the fundamental aspects of LEAPS, focusing on their sensitivity to volatility (Vega) rather than gamma, and explain how they can offer a more capital-efficient alternative to outright stock purchases. They elaborate on different strategies, such as using LEAPS for a synthetic covered call, or 'poor man's covered call,' to reduce the overall cost and risk. Additionally, they highlight the need for diligent management of these trades to avoid unwanted outcomes, like forced exercise of the option.   01:04 Welcome to Options Bootcamp 04:15 Basic Training: Learning Options Trading 07:52 Discussing Leaps: Long-Term Equity Anticipation Securities 16:57 Stock Substitution Strategy with Leaps 22:48 Poor Man's Covered Call Strategy 26:15 Conclusion and Next Steps  

In this episode of Options Boot Camp, Mark Longo and Dan Passarelli dive into a myriad of topics regarding options trading. They discuss educational resources available from the Options Insider Radio Network, followed by insights into current options market phenomena including meme stocks, a focus on Palantir and Circle options, and the risks and rewards of specific strategies like spreads and selling premium. They analyze listener questions on challenges facing options traders, including liquidity issues and execution problems. The episode wraps up with a tribute to Ozzy Osbourne, exploring his influence on music and the recent surge in pop culture relevance.   01:04 Welcome to Options Boot Camp 03:31 Listener Mail Call 04:51 Market Trends and Analysis 06:02 Meme Stocks and Short Squeezes 09:06 Crypto Market Insights 11:15 Options Trading Challenges 21:11 Audience Insights and Trading Preferences 21:43 The Case for Debit Spreads 23:24 Circle's Puts: Too Good to Be True? 28:49 Open: The Hot Meme Stock 31:45 Remembering Ozzy Osbourne 36:39 Upcoming Events and Final Thoughts  

In this episode, hosts Mark Longo and Dan Passarelli delve into a list of supposedly forgotten or underused options trading terms generated by Chat GPT. They evaluate and discuss each term, including box spreads, conversion reversals, put-call parity, skew, sticky strike versus sticky delta, jelly roll, gamma scalping, pin risk, synthetic positions, and more. The hosts determine whether these terms are truly forgotten or still relevant, sharing their opinions and personal experiences with each concept. The episode provides an insightful look at both historical and obscure options trading terminology.   03:27 Options Drills: Strategies and Techniques 04:15 Forgotten Options Terms: Listener Submissions 06:01 Evaluating ChatGPT's Forgotten Options Terms 20:56 Theta Gamma Trade-Off Discussion 23:01 Double No Touch Options 23:53 Jelly Roll and Forgotten Terms 24:27 Early Exercise Premium 25:11 Second Order Greeks 26:28 Zero Day Strategies and Back Testing 28:55 Put Ratio Back Spreads 30:36 Synthetic Positions and Volatility Smirk 31:35 Risk Reversal and Break Even Volatility 33:07 Dividend Risk and Sticky Vega 35:00 Calendar Butterfly and Forward Volatility 40:05 Vol Cones and Final Thoughts